Someone paid nearly $1 million for this renovation nightmare

The property sold for nearly $300,000 above the suburb's median price. Image: realestate.com.au

A house in the Queensland suburb of Kedron sold for nearly $1 million last month, but it could be beyond repair.

The property (complete with two bedrooms, one bathroom and no car park) was sold by the Public Trustee, and the deterioration of the house indicates that it may have belonged to a deceased estate.

Many investors look to Public Trustee auctions for a great deal, so you could be forgiven for raising an eyebrow when this house sold for $976,000 – almost $300,000 above the median house price for Kedron.

That is, until you realise that 22 Gail Street is actually set across two 405 square-metre lots and located just eight kilometres from Brisbane CBD.

When there’s an opportunity to subdivide a property and sell off multiple dwellings or plots, the value instantly increases. Especially if demolition of the existing property looks like it might one day be carried out by a stiff breeze.

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It seems time has already begun some of the demolition work. Image: realestate.com.au

The description for the property on realestate.com.au contains only a halfhearted attempt to position it as a renovation opportunity, suggesting ways that the property could be improved before stating that “the greatest worth may be to investigate with the local council authorities the ability to redevelop the site utilising the dual lots”.

The listing also recommends any prospective buyers get a head start on their due diligence, so one can only hope those who signed the papers had the go-ahead.

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The dwelling includes the original kitchen. Image: realestate.com.au

Close to Padua College, Kedron Primary and Stafford City Shopping Centre, and within easy reach of public transport, the Kedron location is ideal.

“Long enclosed verandah begging to be opened up or transformed into additional sleeping/living area.” Image: realestate.com.au

The new owners will have to check for any use of asbestos, given that the construction of the building occurred circa 1920. However, if none is present, the timber framework, pine floors and VJ interior are already leaning precariously, and might be easily knocked down with a well-placed kick.

Maybe a touch of paint could make it look brand-new? Image: realestate.com.au

Would you attempt a renovation for this property, or would you start phoning demolition companies?